(Source: USA Today)

But the oil industry is quietly sowing the seeds for a sharp run-up in gas prices once demand recovers.

Oil companies are slashing new investment and production far more sharply than analysts projected just a couple of months ago, a strategy analysts say could lead to shortages and higher gas prices when consumption rebounds. And, analysts say, a standoff between the oil giants and their suppliers over the cost of rigs, labor and other expenses could prolong the investment slowdown.

“The turnaround will probably come faster than people expect, and the supply won’t be there,” says Joseph Stanislaw, an adviser to Deloitte’s energy practice.

Oil companies are shaving exploration and production spending 18% this year, including a 40% drop in the U.S., according to new estimates by analyst James Crandall of Barclays Capital. In December, the firm said budgets would fall 12%, 26% in the U.S. Drilling in the U.S. is down 39% from its September peak.

(Source:  Wall Street Journal)

President Obama and Vice President Biden spoke with Transportation Secretary Ray LaHood Tuesday at Transportation Department headquarters, where they announced the first batch of stimulus funds getting distributed. In an interview with The Wall Street Journal, Mr. LaHood talked about spending stimulus money wisely, his opposition to an increase in the gasoline tax, new fuel emission standards and more. Below are edited excerpts from the interview.

* * *

The Wall Street Journal: What’s being done to ensure that the $48 billion going to transportation projects in the stimulus bill is spent wisely?

Mr. LaHood: Our people are in touch daily with these DOT secretaries. We generally, having worked with them for years and years and years, know what is fundable. It really falls under two categories. Projects that were started and then stopped because they ran out of money, and something that’s been sitting on a shelf in a DOT office because they didn’t have the money to fund it. Some of these, like the one we announced today (a road repaving project in suburban Maryland), have been in process…These are projects that these folks have known about and have been talking about for some time. This isn’t something brand new that’s been sprung up on them…I don’t think you’re going to see something weird pop up…It’s pretty traditional stuff. It really is.

WSJ: Are you concerned when you hear squabbles between mayors and governors over how to spend the stimulus money?

Mr. LaHood: [Cities] are concerned that 70% of the money is going to the states and they’re only going to get 30%…These disputes, look it, they’re going to take place….In the end, I’m not going to be able to change the idea that 70% of this is going to the states and 30% are going to them. I tried to make a case for them. But the way it’s designed here…it is what it is.

(Source: Forbes)

Automaker’s finance unit is believed to have requested $2 billion loan from Japanese state-backed bank.

Finding it difficult to raise money in the U.S., Toyota Motor is reportedly seeking emergency funding of about 200 billion yen ($2 billion) in dollars from a governmental institution in Japan to support its U.S. auto-financing operations.

Commercial banks have been cautious to grant loans amid the credit crunch, particularly to the slumping auto industry, and Toyota (nyse: TM – news –people ) and several of its financing affiliates have had their credit ratings reduced, hurting their ability to raise money on the capital markets. As a result, Toyota Financial Services, an auto-financing unit of Toyota Motor, is turning to the Japan Bank for International Cooperation as a last resort for low-interest dollar loans, various Japanese media reported Wednesday.

In response to the global financial turmoil, the government funded an emergency JBIC program late last year to provide loans and debt guarantees to help Japanese firms finance operations overseas.

Click here to read the entire article.

(Source: The Boston Globe)

(Source: Living on Earth)

Ridership on the nation’s mass transit systems; subways, buses and light rails, is at an all time high. But while the mass is up – transit, the number of stops and services is dropping dramatically, even while ticket prices are taking a hike. The federal stimulus package will infuse a massive 16 billion dollars into public transit, half of that for high speed rails.

And William Millar, President of the American Public Transportation Association says, the money is arriving right on time.

MILLAR: Well we like to say it’s the best of times and worst of times, as that famous writer once said. In – since that – in 2007 we had reached a modern high of about 10.3 billion times that year Americans used public transit, only to be eclipsed in 2008. Looks like there’ll be at least five percent higher than that . 

Eleven federally designated high-speed rail corridors have been in the works for years, but funding for the projects was not available until now. (Courtesy of the U.S. House of Representatives)

MILLAR: In most cases the revenue is not able to keep up with the cost. While people think of paying their fare let’s say when they get on the subway line, that fare is designed to only cover perhaps a third, maybe half the cost of the system. The rest comes from a combination of federal, state and local funds, and those funds come from the very sources that we’re seeing the down turn in the economy. So, sales taxes is a frequent way that it happens or property taxes, and, of course, property values are falling throughout the country. Sometimes gasoline taxes, but, of course, we’re using less gasoline than we did. So at the very time we ought to be increasing our public transit use to meet the new demand, we’re finding that many transit systems around the country are having to cut back, having to raise fares, because, of course, we have to balance our budgets just like everyone e/lse does.

(Source: Transportion for America)

The Monterey-Salinas Transit System in California is one of the 80 systems chronicled on our map facing job cuts, service cuts, or fare increases. Photo submitted by Danny Avina and the MST.

Here at Transportation for America, we’ve spent a lot of time documenting examples across the country of transit agencies cutting service, raising fares, or laying off workers to cope with slashed budgets and growing deficits. In nearly every instance we’ve found, there’s a similar pattern — declining state and federal aid, paired with decreasing revenue, pushes a local transit agency to make cuts, even while ridership remains at all time highs as residents look for cleaner or more affordable ways to get to work or go to the store.

Unfortunately, we’ve hit a grim new milestone in our search for transit cuts. Transportation for America has now documented 80 communities across the United States (even stretching up to Alaska) being hit by these service reduction, fare increases, and layoffs. You can look at all the cuts we’ve found on our transit cuts page. (Continue to let us know if we’re missing any.)

Click here to read the entire article.

(via Editorial – A Smart Way to Help Commuters – NYTimes.com)

It’s been clear for months that only Albany could really rescue New York City commuters from the drastic service cuts and major increases in tolls and fares threatened by the deficit-ridden Metropolitan Transportation Authority.

That seemed a hopeless prospect — until this week, when Assembly Speaker Sheldon Silver, Albany’s most powerful Democrat, announced a compromise plan that could help both the authority and its riders. What is even more encouraging, Mr. Silver is probably the only one in Albany with enough clout to sell such a compromise.

The Silver plan is adapted in part from an excellent proposal outlined last year by Richard Ravitch, the authority’s former chairman. Mr. Ravitch and a commission established to find new ways to finance mass transit proposed two changes: a modest payroll tax for employers in a 12-county area and new tolls on bridges to Manhattan along the Harlem and East Rivers.

Click here to read the entire article.

Obama backs high-speed rail service | CourierPostOnline.com | Courier-Post.

President Barack Obama on Thursday proposed setting aside $5 billion over the next five years so states could boost high-speed rail service.

 

States would have to compete for the grants, which would total $1 billion each year beginning in 2010.

The money was part of Obama’s $3.55 trillion budget plan for next year. The White House only released the budget highlights; the detailed spending blueprint is scheduled to be unveiled in April.

The rail money comes on top of $8 billion for high-speed rail in the $787 billion economic stimulus plan Obama signed into law this month

(Source: Wall Street Journal’s Environmental Capital Blog)

President Obama this week urged the country to boldly confront challenges and take responsibility for the future. Today he was starkly reminded by a Congressionally-appointed commission to do the same when it comes to filling the massive hole in the nation’s transportation budget.

In a report issued today, the National Surface Transportation Infrastructure Financing Commission said that raising gasoline taxes and taxing miles driven instead of gallons are the only viable ways to get the tattered U.S. road and transit system back on track. The Obama administration just shot down both proposals.

The recommendation was two years in the making—the commission’s mix of transport industry veterans, elected officials and think-tankers has been trying to divine how to raise the extra money needed to maintain and improve roads, buses, and trains.

Click here to read the entire article.

The Transportation Department also received $48.1 billion in the American Reinvestment and Recovery Act for shovel-ready infrastructure construction projects.

The proposed 2010 budget includes a five-year, $5 billion state grant program for high-speed rail projects, which is above $8 billion set aside for high-speed rail projects in the stimulus package.